>> hiring in the u.s. bad winter weather means today's --dictions kick off, weympics look at the companies who stand to benefit the most from sochi. welcome to countdown. >> it is 6:00 in london this friday morning.

bloomberg reporters are standing by across the world. david english is in hong kong. ryan is taking a business minded look at sochi in 2014. hans nichols is in her lynn. -- berlin. caroline hyde is watching linkedin. drove the earnings stock down as much as 15% after hours. >> stay with bloomberg today for a host of news. we will look at the competitiveness of germany with the head of the german chemical and drug company merck. earnings from norway's biggest oil and gas producer just

breaking. in the next hour, we will sit down with the ceo of that business. interview with nick candy. he says the lending -- the london luxury proper market -- property market is swamped. >> the sochi olympics are being called the most connected games ever. up region is ready to handle to one hundred 20,000 mobile devices at one time. -- 120,000 mobile devices at one time. that is coming up in the next hour. we are just getting those earnings now. they reported 11 million norwegian krone -- 11 billion norwegian krone. they say they aim to cut their

by more than $5 billion from 2014 two 2016. they will deliver about three percent organic production. ceoill be speaking to the later on. we will get his take on where the business is heading. this is the largest producer in norway. it is owned in large part by the norwegian government. get canceled a lot of projects in the last couple of months and they scrapped plans for a particular pipeline. 20 to talk about. -- monday to talk about. >> -- plenty to talk about. >> it looks like they will be ending the week on a high note. the morning, david. >> we have two or three hours left before each and every market shuts for the week.

it is a good way to end the week. a third day of gains. those seem like a mystery -- a distant memory. closing up shop, up two percent for the nikkei. we have recovered more than half of the sharp drop from tuesday. out andsachs coming saying inflation is likely to stagnate around march and april of this year, resulting in the boj adding stimulus. inflation outlook for the country. china is the other big story of the day. much weaker, but we have covered a little bit of that. happy friday. >> david, one stock is resuming

trade today in hong kong after a very long time. isthe name of the stock birmingham international holdings. this is the hong kong listed owner of the football club. not exactly get a warm welcome from markets, down 34%. the owner a few years back was charged for money laundering, $93 million. he resigned as chairman. they were used to pay for a stake in the club. he is awaiting trial and the stock taking a big hit, 33% underwater. >> thank you, david. >> it is often referred to as the most important piece of economic data in the world.

we will find out how many jobs were added to the u.s. economy later on today. jonathan joins us today. look back at that ugly number from december, 74,000. blamed -- if in doubt, laying the weather. -- blame the weather. i say wait and see. if you ever played in the tail on the donkey, there is a real pin the tail on the donkey feel about this. spread.big the weather continued in january, didn't it, john? the unemployment rate itself, does it matter anymore? >> i am calling this the janet yellen dilemma.

they have tied policy to an unemployment rate of 6.7%. it were not expecting that to happen until next year. now.e at 6.7% right good news, not quite. the first one is the unemployment rate. down to 6.7%. the second chart is the participation rate. the percentage of working age people active in the labor force were actively working for work. it has steadily been falling. it is in a range we have not seen in a number of decades. this is hard to explain. demographics one of them. people dropping out of the workforce. people are giving up. consensus, it is the falling unemployment rate is not necessarily an indication.

the likes of goldman sachs think we could have a lower unemployment rate because a lot more people will drop out of the workforce. >> good or bad. that number breaks later on. >> 1:30 p.m. london time. >> the world's most expensive games begin with the opening ceremonies tonight. ryan joins us with more and what the games mean for russian business. >> a russian bank has a note out saying to companies that stand to benefit -- a national carrier , they tripled their flights from moscow to sochi from five to 15 a day. they have had pretty impressive volume growth. not just because of sochi, but that is a big part of it. they think this is an opportunity, with all the

tourists coming in, they will have to use them through moscow to close the perception gap. this is an airline -- this has gotten much better. on those important international flights because they want to raise their game. they have a new fleet, great service. if you talk to business travelers, they prefer aero flot over british airways. engine often called the 60% of theussia, market share in russia. we will have more traffic because of the olympics. people will be wanted to find out what is going on and sharing the information. the advertisers have to pay more money. that stock doubled last year.

>> do they have an english version? >> they do when they are moving into turkey as well. they will set up an r&d center in germany. they do see some emerging markets as a place to expand, turkey being one of them. the semantics they use in their search engine are said to be very good. >> which companies are losing out? >> your big state backed companies. a lot of the listed companies in russia still have one big shareholder. those kind of got the phone call from the kremlin. it would really be good to sponsor these projects. the biggest pickle producer in the world, their stock is down by eight percent. we saw would be another good example, the world's largest

aluminum producer. investors say, we will not show -- we are not sure that was the best use of it. >> the eighth person to avert steve: --two over for the eighth person. our international correspondent hans nichols joins us from berlin. how is this good news for cohen? in theid not squeal vernacular of all those old movies. prosecutors are not any closer to knowing what they talked about on july 20, 2008. that is once sac capital sold some stocks and pharmaceutical companies and netted a profit of $275 million. there is a case about insider trading, a case about who knew what.

it does show you an indication of how far down sac capital has come. it is a $9 billion fund. there does not appear to be any additional prosecutions in the offing. that could mean steve is in the clear. here is what prosecutors want. they have two counts of securities frauds, one count of insider trader, he is looking at 15 to 20 years. -- he saidt you said . in the end, it made him a convicted felon and likely will be the result and the forfeiture of his illegal windfall and the loss of his liberty. the jury liver -- deliberated for less than three days. guilty verdict. he still has not been sentenced yet.

thank you, we will speak to you later. >> we are going to give you a little bit of a look at what is coming up. caroline hyde, you'll be watching and dan. -- linkedin. >> 42% in growth not good enough? it failed to impress the investors. we sell the stock plunged more than 15% after hours. this is five straight quarters. slowing growth in terms of sales . a chief executive trying to show international expansion. all eyes are set on china. swisswill be looking at a referendum. they are talking about capping the numbers of foreigners allowed to come and work in switzerland.

, we will break that vote down what it means for the biggest companies in the world. >> thank you very much. >> the most expensive olympics ever kick off today. russia's place on the world stage. ♪

time for today's company news. a 3 billion euros stock sale and negotiating with france despite criticism by some investors. they are in talks to sell the stake as part of the re-organization. an agreement between them could be announced as early as six months. the deal is subject to chinese government approval. he didn't forecast -- linkedin fored sales, it is headed its fifth straight quarter of decelerating sales growth. it is seeking to expand abroad

and mobile features and make acquisitions. welcome back. >> the start of the winter olympic games in sochi puts the world spotlight on russia. let's see what russia hopes to get out of the games. the founding partner of prosperity capital management joins us. ryan is in on the act as well. 50 billion spent on these games. money well spent? >> more than two thirds of that isn't the structure -- is infrastructure. money,se it is a lot of but they feel very happy to have the olympics. >> what sort of boost to the economy will it provide outside the local economy? factor,eel-good

celebrating peoples optimism. >> does it boost growth? >> i think it helps a little bit, but russia is a very large economy. the olympic games does not make much of a difference, except psychologically. >> it seems every effort the government does does not go very far. is it fair to say the games won't improve the image of russia as a place to put your money? >> the impression of russia is so negative all over the world. just a little bit up will be quite helpful. hopefully, these games will go well in all of these fears are unfounded. >> you have been working a lot to help and prove the image of corporate governance in russia.

you are running up against some headwinds and objections. what is the biggest stumbling block? overall this time, corporate governance has been the biggest problem. we try to work to improve the situation. people who feel minority investors should not meddle in their businesses, like you would see anywhere. enormous -- in the last 20 years. after the crisis, the government realizes this is not quite good enough. we have seen some real improvements. >> ryan mentioned a few companies that benefited and probably will not benefit from the sochi games. benefit? that could

>> not really. this is a two-week thing. i am from sweden and we love the winter olympics, but it does not make a huge economic difference in the long run for specific companies. >> if you look at global things, emerging markets seem to be out of favor. in some cases, they have been oversold. where does russia fit as an opportunity? increase.roductivity inefficient companies. they are modernized, getting better management teams, implementing modern technology. these processes are happening all the time in russia and that is what we are targeting. to see how this management teams are turning the companies into more productive companies. the russians are very well

educated and able to introduce modern technology in their operations, whatever they may be. >> stay with us. we will continue our chat about russia. ♪

>> welcome back.

>> it rose yesterday, many investors, bank of america singing its praises. why should we buy it right now? >> it is a turnaround story. it had always been a problematic company with many issues come -- issues, what it is starting to turn around. less corrupt, paying higher dividends, the upside is very substantial. it used to trade at a pe of 12 before the crisis. now it trades at a pe of three. if the government implements the dividend policy, they will have a nine percent dividend yield. >> your best investment in the last 12 months? new management teams come in

and really turn companies around and make the more efficient. we have seen a tremendous increase in production and and a 17% dividend yield. >> we certainly like dividends. it proves that they are making money. sometimes you have companies that announce big profits, but there is no money left. the used to be a company like that. >> will continue to lag major western stock markets? >> i do not think so, but we will see. if you have an average pe of less than five, [indiscernible] >> thank you.

linkedin disappoints with a weak sales output. they are betting on one country for growth. ♪

>> the selloff in emerging markets could continue. outlook differs from jim o'neil who said the selloff has created a buying opportunity. matthew was found guilty on all charges of the largest insider trading case ever. he faces as many as 20 years in prison on the most serious counts. dismantled ag kong

world war ii bomb containing explosives. more than 2000 people were evacuated after the bomb was found at a building site in the happy valley area. welcome back. shares inn after-hours trading. it is set for a fifth quarter of slowing growth. caroline hyde, what do the numbers tell us? >> 42% growth in sales, not that living up tos not expectations. they demand more from these tech giants in the united states. that exponential growth we are

used to, 70% increase in sales this time last year, is not going to keep on being repeated. five quarters announcing slowing growth. it shocked investors. every single unit of linked in issuing a slowdown. -- linkedin is showing a slowdown. marketing solutions, premium subscriptions. we are not getting as many throughhooking up linkedin. they are trying to look at giving services to blue-collar workers. they are trying to build size. they bought a company called

bright, what investors want more . >> they want more in china, don't they? set itself apart from the likes of twitter and facebook. and are allowed to work they are in no way blocked in china. they have 4 million users. this is the key to expansion. we could be much bigger in china, think of the numbers. the population is four times the size of the united states. one in five of the world's educated knowledge workers and students live in china. how do you do that? how do you expand? the presidentd from google recently. maybe that is where they are going to be coming from.

clearly, investors want to see the bang for their buck first. terms of then macro themes that this taps into. what impact that will have on businesses that rely on people moving from job to job. it is already a lot farther than you see in the united states or the u.k.. the turnover in china is quick. people tend to change jobs three years. it is much longer than that in the united kingdom. there is so much more necessary in terms of hooking up potential employees with attentional employers. -- potential employers. people want to change jobs and they want to change fast, what do you make it more chinese

friendly? for linkedin is in chinese. if you put in chinese language too much, you eradicate what linkedin is aimed at. the person who can speak many languages, more highly educated. interesting. >> if you miss your earnings or shares, twitter, 25% lower. >> especially if you come off a good run. >> one and more five workers in switzerland are foreign. that could change. our international correspondent is in berlin with more. what impacts could this measure have on business? >> for certain industries like health care, pharmaceuticals,

they may have to scramble because they rely so heavily on foreign workers. , 50% ofook at the r&d them were not born in switzerland. what we have here is an attempt to renegotiate a 1999 treaty. what this referendum would do was place caps on the number of eu nationals that could, and have residency permits for switzerland. that would force all sorts of renegotiations of this treaty, including the movement of goods and transportations. increase in the number of foreigners living and working in switzerland, 25%. industry groups are opposed to this. one of their arguments is, we will not be able to have a number of employees for our businesses. take a look at some of the

companies that were founded by immigrants. companies like nestlé. overall, the swiss economy is a picture of health. .n unemployment rate of 3.5% compare that with the rest of europe, 11%. this is concerning to industry and we will see how the vote comes out on sunday. >> every time we speak to you, there seems to be a new referendum in switzerland. >> it is easy to get on the ballot. you gather 100,000 signatures. i should note that the latest polling has it at 43% chance of passing, that that poll was taken january 29. we do not have fresh data on this. the number of voters who say they would support it up six percent.

it is trending towards passage, but we do not have any fresh data. there are loads of referendums do in the next months. >> the candy brothers are the designers of london's most expensive apartment complex. candy and candy are planning to go global. >> one hyde park, the most expensive apartment block in one of the world's most expensive cities. it is the brainchild of these two brothers nick and christian candy. the 36,000 square meters of opulence sits on a prime corner bordering hyde park. this is superluxury. is $6.5ting price million for a one-bedroom apartment going up to over $100 million for the larger apartments.

to license its name for luxury residential apartments and is looking for international partners. it might he a good time to look east as well. nick candy warned parts of central london were in danger of becoming swamped by developments. price increases -- >> bloomberg will be speaking to one half of that overly hurray, nick candy will be on later on today. interesting. we will take a short break. ♪

>> time for today's company news. estimates beat profit even as advertising revenue continued to fall. as muchp. shares gained as five percent in late trading.

--estors in dubai bloomberg turn aroundged to sony's consumer electronic business. instead, the tv business will lose money for a 10th straight year. the $1.6 billion plan to buy out the local partners has won the government's approval. india ended limits on foreign ownership in the set your. -- sector. welcome back to "countdown." >> the european football season is heating up and we have two big matches approaching. liverpool takes on arsenal. tell us what we can expect to see in these matches.

good morning, thank you for joining us. liverpool, arsenal. rue the fact they did not spend money in the transfer window? >> this is a crucial time for arsenal season. the next four games against liverpool, manchester united, liverpool again. they neither squad to be at. . these are the numbers of their top scorers this season. they had contributed to 20% of the team's goals. everyone was expecting for arsenal to buy striker. already injured. he was injured when he signed him. when we have our next injury drive, he could play again. >> why so many injuries? >> no one is quite sure.

maybe their recovery is not great or they are doing something wrong in training. more than other teams. some people think it is down to luck. >> can they sustain their running or not? lucasnicholas benton or -- it will be difficult for them. >> this is in france. monaco versus paris. you say is monaco loses, it is game over. cleary will be a points with only 30 games to go. they have done well, monaco. they had a decent chance of finishing top, but we see the chances are far greater of psg winning. monaco -- they are not

.xactly a poor club >> this is the new narrative. they have a new owner, 130 million euros last summer on lots of big named layers. -- layers. -- players. will we can't compete financially with manchester suddenly, the oligarch owned clubs are the poor little guys. , to try tojured counter his injuries by a certain fellow. he is to play for manchester united. >> a slightly strange signing.

forward, he is mobile. he does not score as many goals. he is the key man. it doesn't show some ambition -- it does show some ambition. who aree young players not getting a chance. they have won four out of five. i would suggest he might be a super sub. in this game, he will make the difference. >> can he make this sort of impression or not? >> probably not. he has not scored as many goals.

he does not seem that happy and monaco. -- happy in monaco. >> psg edison could be that the end of the season. he is injured. they do not seem to be too affected by it as long as this man stays on the team. >> champions league starts again in a couple of weeks. they need him to step up. his form often drops off. they need 10 to the -- they need him to be at his best. it would probably look better on you than me. psg, whatmonaco and do you think?

>> even if monaco doesn't when doesn't win it, they cannot compete with psg. they got promoted last year. if they finish second, they have done very well. >> thank you for joining us today. club has finally arrived in the u.k. let's see what the guardian has to say about it. around.

>> welcome back. we are just over an hour from the start of today's equities trade. what more could you want? so terrible has the weather been that we are feeling depressed. these four penguins are similarly depressed. so miserable they are worried they will not lay eggs. they are having to give them antidepressants.

they were found off the coast of peru. what they don't get is week after week of the downpours and the high winds. >> did anybody consult with the penguins? is it ok to give an animal and antidepressant? >> it has made them feel better. misery can lower their natural defenses. uppers.hem to prescribe it is slightly a joke, but overall it shows you rain today, rain yesterday. it is affecting wildlife, too. this is in reference to a u.k. advertising campaign for chocolate this get. iscuit. get -- b

>> ryan? >> how can i follow that question mark i am -- how can i follow that? >> i am following the trials and tribulations of the jamaican bobsledding team. for 12 years, they were out of the olympics. it has been a bit of a hassle getting to sochi. they missed their connecting flight. a jamaican ad delta haut them up with the right flight. then their luggage was lost. the protein powder was unsealed in the computer to -- security check. they got into their helmets. when they were doing their test runs, it was more foggy. >> one of the guys on the team is 46 years old.

he was in decades ago. he said he still had the body of a 26-year-old. he is financing it, isn't he? 10,000 pounds of his own money. >> borrowing lots of deer -- gear. >> maybe someone will make another film. >> you think about the translation into russian. films to watch this weekend. dallas buyers club is up for best picture. the guardian gives it four stars. i gave it four stars. will he win the best actor oscar? i think you might. leto plays a transgendered character, he is up for best supporting actor.

it is a wonderful little film. texanys a good old boy who contracts the hiv virus. has aids ultimately. i will not tell you what happens in the end. it is a battle to get treatment to counter the aids. it is based on a true story. >> somebody decided to remake robocop. >> why did they remake these films? i pull my hair out. one star. i would give it no stars. turbines,ter according to a planning application that has been put in south wales. >> look how sunny it looks. >> a bold new era for electricity supply. ,t is a planning application

but it is fascinating. absolutely. >> the continuing the next hour, stay with us. ♪ .

>> hiring in the u.s. picks up in january. and what winter weather means. >> guilty of the most lucrative insider trading scheme ever. matthew is convicted. >> and going for gold as the olympics kick off. we look at the companies that stand to benefit the most from sochi. >welcome to countdown. >> it is 7:00 in london this

saturday -- friday morning. jon ferro is looking ahead to the jobs data out of the u.s.. >> taking a business look at sochi, 2014. berlin, details of the sec insider trading conviction. >> stay with us for a host of big interviews. the competitiveness of germany with the head of the german chemical company merck. for statoil. >> and pulse has an interview candy.he candy -- nick he says prices may go lower. >> the sochi olympics are called be most connected games ever.

the region is up to handle 120,000 mobile devices that one time. we will talk to the president of of a -- avaya. how many jobsday were added to the u.s. economy. jon ferro is here. >> chinese gdp? >> possibly. >> now they say chinese pmi manufacturing. they say that is right that there. >> what to expect for the job number from the u.s.? >> a rebound. december.umbers for we are expecting 180,000 today. what strikes me as the range of totimates from 105,002

270,000. is a guessing game, because of the bad weather. the worst december since 2009. you never know what could happen. >> what about the unemployment rate? there are a lot of questions being asked about what the data is telling us. >> this one is a bit of a dilemma. it will be for janet yellen. a couple people think we could see unemployment go down to 6.5%. over the past year, the fed has been saying we will change our interest-rate policy once unemployment comes down to 6.5%. unemployment has come down quicker than anticipated. rate charts will show the over the last five years. it has come down from 10% to 6.5%. almost a mirror image of that

rate is the participation rate chart. the percentage of those in working lease -- age who are actively looking for a job. this is the 1970's low. people just dropping out of the labor market. that is what is bringing unemployment down. demographics, people just giving up. the view is that unemployment view of the the strengthening market. >> will today's number have any impact on paper? >> this is interesting. every official that came out after the last number disregarded it. it was such an anonymous -- anomaly. the perception is paper is on autopilot. janet yellen is the queen of communications. >> saying that the bar is really

high for any change. >> you would have to see a substantial slowdown for them to really rethink this. >> come back with the second-biggest piece of economic data. >> now the sochi winter olympics. they began with the opening ceremony tonight. russian companies are among the winters -- winners and losers. what does the gaming for business? >> they are suggesting investors by two stocks. one is the national airline of russia. they are increasing traffic as a result of the fights to sochi. the stock could gain because there is a huge perception gap. everybody thinks they are

terrible. it has gotten so much better. the planes are better. the staff is better. a lot of business travelers go aeroflot.and take that perception gap should mean more investor interest. stock went up 50% over the last six months. interesting to watch. also a russian search engine, the google of russia. it has 60% of the market. they are also pushing into turkey. they will benefit from increased traffic and ad revenue. advertisers will have to pay more to capture that excitement with the increased traffic. there is the double last year, another good one to watch. >> are there companies that have not lived up to expectations? >> the state backed companies and companies with one oligarch

as the main investor have suffered. that is fair to say. people have zoned in on this as an issue. they got a call from the kremlin a thing asre is such social responsibility. you should invest in the games. investors were saying we won't get much of a return. company,udes a nickel the largest producer of nickel. there shares lost eight percent. -- the largest pursuer producer of aluminum lost one third of their market cap. he has been there for 20 years investing. obviously, the lyrics is a two-week event. when they talk about the $50

billion that was put on the act on thend the imp economy, it has happened. it is a much larger cut -- economy. sh is an opportunity to the light on russian businessesine. >> matthew has been found guilty on all counts in the biggest insider trading case. correspondentnal joins us from berlin to tell us why that is. tioma because mark did not plea. they are no closer to understanding what happened between him and steve: on july 20, 2008. ohen on july 20,

2008. prosecutors never wanted this case to go to trial. it is no longer a hedge fund. it has gone from $14 billion to a family fund of $9 billion. they got a conviction but not more information. two's what they got -- counts of securities fraud. one count of insider trading. he is looking at 15-20 years. here is the u.s. attorney trying to talk about the victory he had. in the short run, cheating may have been profitable. in the end, it made him the convicted felon and will result in the forfeiture of his windfall. jury reachate -- their deliberation in less than three days. this could be the last cruel case associated with --

>> are there signs he could cooperate with oscars to get a lighter sentence -- prosecutors to get a lighter sentence? >> he still has the chance, but prosecutors introduced evidence that he fudged his transcript at harvard law. he was expelled. he turned a b-2 in a in criminal law. that may make him a questionable witness. >> thank you very much. hans nichols from berlin. >> the competitiveness of germany with the head of the company merck.

>> today's company news. billion stock sales negotiated. that is despite some criticism. china medals -- m

inmetals -- the deal is subject to chinese government approval. and forecast sales that fell -- linked insales fifthded for the straight quarter of declining sales. welcome back to countdown. i mark barton. >> it is 714 in london. -- 7:14 in london. the head of the company merck is in town. luckily for us, he stopped by with louisburg. -- bloomberg. karl-ludwig kley joins us in the

studio. let's talk about the idea of germany losing competitiveness. do you think that is happening? >> no. germany is competitive. we are struggling with the energy concept by the government, which threatens competitiveness. i think the new government is moving in the right direction. the industry is sound and strong. 20% of gdp is industry. i am positive. makinghe government mistakes with the energy policy, pension reform? are they making mistakes or are they on the right track. >> name anybody who does not make mistakes. the energy policy is not what should have been done. pension couldthe

have been more careful. but it is all manageable. we can deal with that. >> big deal with your company -- news when it comes to your company. shares had their biggest falls in four years. 12%. i gather there was such a term as the premium. he was responsible for the extra premium in your share price. it had a remarkable run before the klein a week ago -- eight ago.ne a week >> we regret him going. he did a fantastic job communicating with capital markets. merck is not changing its course. it is keeping the course we had done. he was part of a team.

the company will go on. >> how was the search for a new cfo? what be a insider or outsider? >> it is progressing. there are a number of interesting candidates. >> talk about the strategy of the business. you have been trying to be more inquisitive. -- acquisitive. you have had to increase offers to businesses. are you trying to do more of this? track.acquisition is on 56% acceptance rate. the offer stands as we have submitted it. we are confident. 56%, but i understand you want to get to a higher acceptance rate. >> yes. but it is within the president

-- precedent. >> is the room to do bigger deals? is there room for a bigger deal? i read you have $8 billion in the coffers for acquisitions. is that right? >> we have communicated in all four businesses, we will be ready to look at acquisitions after the efficiency program. which is running until the end of the year. the only thing is, we will not do anything that is not financially sound. we have solid topline and good profitability. let's look and see what happens. >> can you give a sense of what is happening in emergency markets? -- emerging markets? companies -- countries like circuit -- turkey, south africa,

argentina. what impact do you expect the recent events to have on your sales and business? >> at the moment, not too much. we have a portfolio that is targeted for what those markets need. in the third quarter of last year, emerging markets for the first time in history have been bigger than european sales. the shift of resources has paid off. we have a risk balance in countries, products, and market approaches. i do not expect a major shakeup. >> in terms of the structure move towards emerging markets, you think the logic is still there. >> definitely. >> where do you see the biggest opportunities in emerging markets?

of opportunityts for businesses like yours? >> other than dropping the usual suspects, i would like to draw your attention to southeast asia. that negotiations to form a unified market is interesting. where is the next blockbuster? i'm talking about drugs, the core of your business. the next big blockbuster drug was 2003. -- have you had seven some exciting drugs in early stages. when can we expect the next big drug? history of not being

successful in developing our drugs. i have to admit. as a consequence, we reshuffled management and put new people in place. what they are doing i like a lot. there is a lot going on in our pipeline. with our history, i am reluctant to inform you about the next blockbuster. i believe we have to believing -- ring delivery first and then talk about it. i'm confident we are on the right track. >> it will take a few years for those in the early stage development. >> yes. >> that is much is you will tell us. power on howe much you can move prices in the u.s. and europe? >> the only country where you have some kind of pricing flexibility is the u.s. you havether markets,

regulations that make it difficult to change pricing. the model is healthy and with the right products, you can get decent pricing even in the u.k. >> even continental europe. >> what do you love most about your job? i think you are 63 this year. you have a contract through 2016. would you love and what is the hardest thing? is that ilove most can work in an environment which has two different ownership structures. we have a family that owned 70%. we are listed on the stock market, which gives us sustainability. and the necessary pressure to givesr. this combination the ceo a lot of strategic possibility to move the company. >> the hardest thing?

>> the same thing? parts of your strategy do not pay off and you have to redo it. realize it didn't work the way we set it up and start again. that is the hardest thing. >> make you very much, karl-ludwig kley. the ceo of merck. thatmonkey or someone like escapes at the tokyo zoo. ♪

>> it is time for hotshots, a look at some of the most compelling images of the date. lake.ng into the deepest the torch has finally arrived in sochi. this is the longest torch relay, traveling 39,000 miles. the flame will be used to open the games tonight. and speaking of customs, a tokyo zoo worker put on a monkey suit. run through the zoo before employees snared him. but took more than 150 workers plus members of the local police and fire department to stop the monkey business.

a chief executive joins us to discuss the company's latest earnings.

>> i am an edwards. these are the top headlines. they say this selloff could continue. the templeton chairman oversees more than $50 billion in his $50 billion. toma was found guilty on insider trading. he faces as many as 20 years in prison on the most serious count. dismantled ag kong

world war ii bomb containing 1000 pounds of explosives. the u.s. oned by the japanese army occupying the city. people were evacuated after it was found on a old insight -- a building site. welcome back to countdown. >> i am mark barton. discuss fourthto quarter earnings is helge lund. oil and gas production fell and prices weakened. you better sum it up. you will do a better job than me. tell us about the company and how things went in the fourth quarter. >> 2013 was a good year for us. operations were very stable. safety improved.

-- projectsproduct on time and schedule. were loweral results than 2012, driven by the fact that we have sold assets and made choices. >> you have been making some tough choices. delaying various projects. d.c. a change in these dynamics of lower production and prices in these see a change dynamics of lower production and prices? with continue to grow but lower capital intensity. we are presenting a plan to our investors. we are lowering investment compared to previous years. we believe this will give higher returns to our shareholders. >> are you sticking with your goals to boost production by what quarter -- a quarter?

>> we have discovered more oil other gasat any company in the world in 2013. our resource base is stronger than ever. we have the capacity to deliver 2.5 billion -- million barrels a day. we had decided to go a little slower to increase return and c ash flow. >> you are aiming for sabina little lower? 2.5 millioneliver barrels per day after 2020. it is not an official goal, just current projections. >> it means the dividend will keep rising. many worrying it will not continue to rise because of declining profits in the industry.

you didn't raise your dividend 0.25 krone. >> we continue to follow our policies and proposed increasing it. in addition, we will turn to orderly dividends. -- quarterly dividends. that will give an excellent payout to our shareholders in 2014. they will accept it at the ordinary meeting -- they will get ordinary dividends for 2013 and more for 2014. >> you seem to be facing surging costs. is this something you had to change your business to cope with? >> we have seen cost inflation and high capital intensity. we are introducing and efficiency -- and efficiency program that will save us money.

>> it will be more competition in norway. they want to attract large producers to compete with you. do welcome the competition? >> absolutely. we like to compete. e -- you always have to improve and change the market. >> the government has raised taxes. tell us how you feel about that. is working to cut costs. when we hear about those steps? how do you feel that the tax hikes. >> the most important thing for an industry that makes huge investment decisions for the long-term is a stable framework. that is important in norway and all the other countries where we are operating. the tax increase was a surprise

to us. we hope it will continue to be -- as it has been in the past. in terms of the cost, we have acted quite vigorously. we will continue to do that with the new program we have initiated. >> stable framework conditions. youdoes that relate to a -- operate in the north sea. is this something you're thinking about is a business? operate, ituntry we stableical that -- framework conditions are important. we have tothat, relate to the political environment that is in a particular country. >> what is the outlook for oil this year? what you reckon?

there are a lot of predictions about the oil price. morenk there are a bit growth potential than we have seen in the few -- the last few years. on the other side, there will be more supply, particularly from opec. the u.s..shale oil in >> gold medals for norway in sochi? the hopes rest on a cross-country skier. >> the winter olympics is very important to norway. hopesk there are big for the norwegian team. >> more than the british team. >> don't say that. much.nk you very good to see you, helge lund.

>> is the opening night of the olympics in sochi. they are said to be the most tweeted and tag games in history. that is due to a company that built a vast wireless network from the ground up. let's take a look at the technology behind me real-time tracking and instant video the world will be watching. we are being joined by the resident of -- >> good morning. scale ofs through the the undertaking and what you have had to do. >> we are very proud to be selected as the official network supplier to the sochi games. we are proud of that. we will be delivering the internet, telephone, and i pieced -- ip tv services.

the olympic family includes athletes, coaches, volunteers, and also the media. that population is in the region of 40,000 people. think of a very large organization or company. bring threewill more -- three mobile devices. a laptop, as wireless enabled camera, and ipad. >> you support all is devices that any time. >> we designed our system to be able to support when 20,000 active devices. -- supportlability 100 and 20,000 active devices -- active devices. >> sochi was built from scratch.

plus and minus. you can start with a fresh design. another challenge is there were two clusters in sochi. there is the coastal cluster for the ice-based games. having to build two different environments was a challenge. at get these big spikes sport events. suddenly you get a massive amount. of traffic managing the spikes is interesting. but we do that around the world for our customers. >> fiber optics five times the height of everest. >> a number of times to the moon. >> i didn't lay the cable. >> you had a team. this is likeof providing a service for

multinational corporation. we do that every day. this is a significant scale and advanced operation. >> this is the most connected games. is that justified? >> yes. we will find when 20,000 active 120,000 active devices. this is a wireless game. vancouver,ack to 2010. the ipad had not been locked -- launched. if you are a viewer or athletes at the games, you have your tablet. you can be viewing your competitors performances. all at the same time. any of the 36 ip tv

channels we are streaming. >> you must be used to operating a number of different locations -- in a number of different locations. you mentioned the connected nature of the drink -- games. many journalists are already there. they are showing parts of the infrastructure that are not ready. how confident are you that things will go according to plan? >> we have been there and tested things every way we can. we are confident we can deliver. we are ready to go. that is my next sales campaign. we are ready to go. we have things set up. for journalists, they can literally be reviewing any of the 36 event and reporting on them with wireless enabled

cameras. might be falling down the hotel rooms, but the wireless should be working. the tweeting and facebook and youtube will be working 100%. >> you are off to dublin tomorrow to watch whales leah layland -- wales p ireland. >> i think they looked little stronger. we are the six nation champion so we will be there and supporting our team. manager -- >> that will be one of the conversations. >> we are taking him off topic here. thank you very much for coming. >> you are very welcome. >> president -- >> a look at the biggest dealmaker in the world. rise inorted a 23%

profit in the most recent quarter. ♪

>> first. bloomberg. >> welcome back to countdown. i mark barton. 7:46. bank of england scaffold --

staff may have condoned practices and current team manipulation. they said it was not improper to share customer orders. bloomberg reporter uncovered the story -- what does this mean for the bank of england? wille key question, is is, distract the banks into another scandal? they were criticized heavily for warnings.g will we see this happen all over again? >> how will this affect the probe which seems to be widening into alleged manipulation? >> we will see our limit asking outtions as to why these -- of concern that the -- why weren't they escalated? >> remind us about the conduct

which they are said to have condoned. >> these traders are said to have been in chat rooms discussing trades ahead of the -- to make sure they were -- they profited from this as well. >> these instant messages are the center of inquiry. every day, we are hearing about more firings and suspensions. give us a sense of where this big probe is headed. >> we have 12 authorities, at least 12 authorities looking at this. this week has seen a nether ramp up in the investigation. the top new york financial regulator is also asking banks to look into this. leaveders are fired or on as a result of this. it seems to be growing by the day. >> the bank of england, have

they responded? >> not in the minutes they released to us. however, they are not elaborating on what was said in the conversation. you back.to have t keep us informed. starts at the top of the hour. francine is here. >> futures are rising for the moment. the dax is gaining. this may be the biggest gain in a while. this week was not so bad. the all-important u.s. employers report, the jobs data -- we are expecting to see them hiring workers at a faster pace than last month. that is an indication of what the market will do for the rest

of the day. >> we have had a few companies reporting. >> some shares we are watching a are arcelormittal. the beat analysts productions and have had a tough time in the last couple of quarters. the share price was sold off a bit in the last couple of months. but see how it reacts in the opening. this is the flipside. let's see how the share prices opened in about 10 minutes. >> francine will be back for on the move. >> job data in the u.s.. a preview next. ♪

>> welcome back to countdown. >> is 7:53. to my right. he is here to tell us about the macro themes of the day. >> i am not alone. it is time to get the dartboard out. andranges between 105000 270,000. we had a massive missed last month. ugly numbers, 74,000.

a lot of people are blaming the weather, the coldest december since 2009. it improved slightly in january. we are looking for a rebound for payrolls. >> the same topic -- the unemployment rate is in focus. but why is it coming out as quickly as it is? >> there has been a lot of buzz about this for a year. you look at the rate for the last five years. it is now at 6.7%. chart iscopy of the the participation chart. ,ou can see it trending lower to numbers not seen since the 1970's. there are many explanations from demographics to people giving up. that chart is not really a key indicator for the strength of the labor market. the fed have tied policy to it, so what do they do?

>> before that, they said threshold -- >> the problem is ing and morgan areley could predict it -- predicting it could come down to 6.5%. by the time janet yellen comes to her first meeting, she may have to decide what they do to -- when they get to six percent. when she backs herself in a corner and ties or software threshold, it is difficult. whether you ditch it actively or slowly move away from it. >> is a challenge for the bank of england. we will find out about that soon. >> exports and imports declining. >> exports down. strengtht indicate key in the economy. >> there is a trade surplus.

>> shall we leave it there? >> thank you very much. next.e move" is ♪ .

>> welcome to "on the move." i'm francine lacqua at bloomberg's european headquarters here in london. we're just moments away from the start of european trading. our markets team has everything covered from companies to currencies. joining me is caroline hyde, jonathan ferro, ryan chilcote and manus cranny. >> two days of torture monday and tuesday. it was cold where i was. the markets seemed to get a reprieve. the big debate is this. the emerging market route

over and finished? it is unemployment day and that is going to dominate the agenda. johnny ferro has that. >> yes, he does. it is all about jobs day in the u.s. >> absolutely. in just about five hours. it is the only number people will be looking for. the estimate is 180,000. keep an eye of unemployment. it is getting close to the threshold of 6.5%. it is actually a good thing. we'll talk about that later. >> we're still keeping an eye on tech. >> the winners and losers. facebook rallied on better than expected earnings but twitter and linkedin falling. sales not impressing. 42% growth is pretty good but not enough. we have too many high